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Business News/ Markets / Stock Markets/  Adani Group still eligible to be part of influential JPMorgan bond indexes
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Adani Group still eligible to be part of influential JPMorgan bond indexes

Per current index rules, Adani Group companies remain eligible for inclusion in CEMBI, JACI and JESG indices

Adani Group still eligible for CEMBI, JACI, JESG indexes: JP Morgan (REUTERS)Premium
Adani Group still eligible for CEMBI, JACI, JESG indexes: JP Morgan (REUTERS)

Adani Group, which has in recent weeks suffered a brutal share selloff following the release of the US short-seller report by Hindenburg on January 24, remains eligible for the CEMBI, JACI and JESG indices, said JP Morgan in a note on Monday, as reported by Reuters, adding that per current index rules, Adani Group companies remain eligible for inclusion in CEMBI, JACI and JESG indices.

"We continue to monitor publicly available information and liquidity of the securities, and in case of market disruption or confirmed default event," it added in the circular.

Adani Group's businesses include ports, power generation, transmission and renewable energy, among others, with a total notional of $7.7 billion in the CEMBI and JACI indexes.

The Corporate Emerging Market Bond Index series (CEMBI) tracks U.S. dollar denominated debt issued by emerging market corporations. Besides CEMBI and JACI, Adani's dollar bonds remain eligible to be part of JPMorgan's ESG Global Corporate Index (JESG), an integrated environmental, social, and governance corporate benchmark covering investment grade and high-yield markets.

The selloff in Adani Group shares is stretching into a third week despite efforts to stem contagion, spurring a flurry of bets in option markets that may give traders clues on how long the declines will last. Adani has rejected in detailed rebuttals the Hindenberg report's allegations of stock manipulation, use of tax havens and criticism that it had unsustainable debt.

Six of the group’s 10 stocks slid Monday, increasing losses since US short-seller Hindenburg Research made fraud allegations against the conglomerate on Jan. 24 to about $117 billion. Billionaire Gautam Adani and his family have prepaid $1.11 billion of borrowings backed by shares to ease investor concerns, the group said in a statement Monday.

Further, National Stock Exchange of India (NSE) has revised the circuit limits of Adani Green Energy Ltd and Adani Transmission Ltd to 5%, according to data on its website on Monday. The NSE had revised the price bands of both companies to 10% from 20% last week. Stock exchanges set the circuit limits to prevent large movements in the price of stocks in a very short time.

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Published: 07 Feb 2023, 08:09 AM IST
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